Baosteel, the world's sixth-largest steelmaker, is set to post its slowest growth in at least three years for the fourth quarter of 2005, as a major expansion failed to compensate for sliding steel prices.

Baoshan Iron and Steel Co. (Baosteel) is also almost certain to see profit fall in the first quarter of 2006, its first such slump since 2003, as higher iron ore prices erode margins.

Recovering steel prices could help Baosteel's earnings rebound in the second quarter, but its net profit is still likely to fall by 23 percent for all of 2006 compared with 2005, according to forecasts by six analysts.